13790-TEC-Annual-Report-23.v5 - Flipbook - Page 6
TEC MEMBERS ENJOY
THE BENEFITS OF OUR
ENERGY FRAMEWORK
For the second year running, we are delighted to share that our members benefited from
a double digit return on fees spent within the TEC framework. In 2022/2023 TEC members
saved an impressive £26.72 for every £1 spent on fees within the TEC framework for Gas,
Power, and Water utilities.
Each year TEC provides every member with a Benefits Statement
which quantifies and demonstrates the benefits of using our
collaborative frameworks. In Higher and Further education this
is a key part of reporting under the Procurement Value Survey
(PVS). We also capture and report contract spend through the
frameworks for each Member’s financial year.
Looking across the entire membership, the highlights from our
Benefits Statements 2022/2023, are as follows:
• Energy spend was £523,782,274
• Energy consumption was 3,913,063,337 kWh
• Return on investment - savings per £1 spent with TEC –
stood at £26.72
• Cashable and avoided costs were at £6,631,047
• Aggregation savings (electricity and gas) through being
part of an aggregated flexible basket stood at £3,661,968
• Fully fixed contract versus flexible contract savings
amounted to £68,493,016
During the last year we continued to see the impact of the
Ukraine invasion on the energy landscape. Sustained high
energy prices and industry system charge changes on fixing
non-commodity elements of contracts led to an increase in
energy spend across the whole membership. Despite the
challenges, TEC’s robust hedging strategy effectively shielded
against record-high prices, mitigating the impact on energy
spend across the entire membership.
04
2022/2023 has been another incredibly busy year.
Highlights include:
• Fifteen new members joined TEC over the last year,
increasing the reportable portfolio membership
by 11%.
• An overall energy meter increase of 18% was
recorded during the last year.
• TEC processed a remarkable 57% more invoices in July
2023 – the Benefit Statement’s closing month for
consumption reporting - than in the corresponding
period the previous year.
• Despite the marked increase in bills to be reported, TEC
retained its excellent average of 99.6% coverage of
all bills produced for the membership, ensuring that
the figures we recorded were as accurate as possible.
The supply and policy landscape continues to be uncertain
through 2023/24, even more so than in previous years. Whilst
we have limited influence over global energy prices and policy
decisions, we will continue to look at how to tackle these
challenges to reduce the impact on our members.
TEC’s emphasis continues to be on encouraging members to
actively monitor and reduce energy consumption and waste.
With the establishment of new decarbonisation leadership
in 2023, TEC is also looking to expand its remit in supporting
members to reduce their emissions in the transition to net zero.
THE ENERGY CONSORTIUM - ANNUAL REPORT 2023
